Unfortunately, “mortgage rates fall to new record lows,” loses its potentially profound significance when it’s virtually the same headline week in and week out.
As HSH.com’s resident expert Keith Gumbinger writes in the latest Market Trends newsletter, besides mortgage rates, what else is left to cheer about? Read the rest of this entry »
Today, April 1, is day one in the mortgage market’s expedition into uncharted territory — uncharted in the sense that mortgage rates have been corralled by the Fed’s MBS-purchase program for well over a year now.
The big question — the 800-pound gorilla in the room, if you will — has been, “what will happen to mortgage rates now that the Fed has stepped out of the picture?”
According to the latest issue of HSH’s Market Trends Newsletter, “Home Loan Rates Slip Back; Lower To Come?,” mortgage rates fell last week to levels unseen since late spring, and have the potential to fall even lower.
“The overall average rate for 30-year fixed-rate mortgages revealed in HSH’s Fixed-Rate Mortgage Indicator (FRMI) nudged downward, slipping seven basis points (.07%) to close the first week of September at 5.56%. The overall average for 5/1 Hybrid ARMs lost five basis points to landing at 4.87%. Conforming 30-year FRMs finished the period at 5.25%, a level last seen in late May.”
According to the latest issue of HSH’s Market Trends Newsletter, “Markets Feeling Good, For Now,” the improving economy should bring higher rates along with it, but as of now, that hasn’t happened.
“While the sun’s not nearly out yet, the economic sky seems to continue to brighten. Usually, that would start to foster somewhat higher interest rates — but apparently, not yet.”
Mortgage rates fell last week to levels unseen in months, but, according to the latest issue of HSH’s Market Trends Newsletter, “Easing Rates as Summer Wanes,” borrowers shouldn’t expect rates to fall all the way back to their spring lows.
“Mortgage rates slipped back a little bit this week, moving somewhat closer to the bottom of the range which has held since late May and early June.”
According to the latest issue of HSH’s Market Trends Newsletter, mortgage rates haven’t fluctuated substantially because of the economy’s inconsistent outlook. “As has been the case over the past few weeks, mortgage rates appear poised to rise on the back of firming economic data, only to have the pressure let out of them by a less-stellar outlook. That’s generally left [mortgage rates] at about the same levels now since early July.”
“[Last] week was no exception. A fair rise in Treasury yields at the end of the week [8-7-09] left us with the impression that we’d see a bit of an upward bias to rates [last] week, at least more than the one basis point tick in HSH’s Fixed-Rate Mortgage Indicator. The FRMI nudged just that lone basis point higher to close [last] week at 5.73%, an average barely any different than those seen since Independence Day passed. The FRMI’s counterpart for hybrid 5/1 ARMs lost six basis points, landing at an average 5.04%. Conforming 30-year FRMs started the week at 5.51% on Monday, but ended it at 5.35% on Friday, still well within the mid-portion of a broad range defined back in late May and early June.”
According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates and the ‘Unofficial’ Start of Summer,” despite entering their annual “summer lull” somewhat early this year, 30-year conforming interest rates remain more than a full percentage point below figures seen last year.
“It’s worth noting that last year’s season began in the wake of the forced takeover of Bear Stearns by JPMorgan and ended with the failure of Fannie Mae, Freddie Mac, and Lehman Bros, as well as other assorted troubles. It does seem likely that this summer will be quieter and much more stable on balance, but the economy remains troubled, if on a lessening basis.”
According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Wandering, Spreads Improving,” despite the fact that the yield on the 10-year Treasury is rising, mortgage rates have remained firm.
“Normally, those rising yields would be pressing mortgage rates higher — but these aren’t normal times. However, with the Fed fully involved in buying Treasuries, agency debt, and MBS, there’s little likelihood of any significant passthrough of rising rates, at least for conforming borrowers.”
According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Firm A Little,” a quiet week, economically speaking, helped foster the hope that perhaps “if nothing else, the worst of the downturn may be passing.”
“With millions of Americans still hitting the unemployment lines and various market troubles evident everywhere you care to look, it’s way too soon for outright enthusiasm — but perhaps not too early to allow hope to creep back into the national economic lexicon.”
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
